India stays silent as world reacts to US tariffs

Source: The post India stays silent as world reacts to US tariffs has been created, based on the article “Calling out American trade illegality” published in “The Hindu” on 21 April 2025. India stays silent as world reacts to US tariffs.

UPSC Syllabus Topic: GS Paper2- International Relations-Effect of policies and politics of developed and developing countries on India’s interests,

Context: On April 2, 2025, the United States announced reciprocal tariffs, triggering global concern. These tariffs, though paused for 90 days for most nations except China, violate World Trade Organization (WTO) rules. The move has drawn varied global reactions—some nations strongly opposed it, while others, including India, stayed silent.

For detailed information on India prepares response to US tariff changes read this article here

Global Responses to U.S. Tariffs

1. Strong Criticism from Major Nations: Countries such as Singapore, Brazil, China, Japan, and Canada have sharply criticised the U.S. actions as violations of WTO law.

• Singapore’s Prime Minister called the tariffs a rejection of the Most-Favoured Nation (MFN) principle, a key pillar of the global trade system.
• Brazil and China noted the illegality of the tariffs under WTO commitments. China also imposed retaliatory tariffsand initiated a formal WTO dispute.
• Japan and Canada formally challenged the tariffs. Canada not only filed a legal claim at the WTO but also imposed retaliatory tariffs on U.S. automobiles and auto parts.

2. Moderate Disapproval by Some Countries: Some nations, while avoiding legal language, expressed displeasure.

• Fiji called the tariff hikes ‘unfair’.
• Italy’s Prime Minister described the U.S. move as a ‘mistake’.
  These countries stopped short of accusing the U.S. of legal violations but made their dissatisfaction known.

3. Silence or Vague Reactions
   • A few countries, including India, issued muted or non-committal statements.

• They did not formally oppose or endorse the U.S. tariffs.
• This silence reflects a cautious, observer-like stance.

Why India Remains Silent

1. Bilateral Trade Negotiations with the U.S.: India’s silence is partly explained by ongoing bilateral trade talks with the U.S. However, this reason is weak. The U.S. has continued negotiating with India despite publicly criticising India’s legal tariffs. Other nations also manage similar negotiations while still criticising the U.S. India could have asserted support for WTO rules without halting trade talks.
2. India’s Missed Opportunity: India’s silence undermines its position as a defender of multilateralism. A public statement could have reinforced its global credibility. It could have reminded the U.S. of its WTO obligations without escalating conflict. Choosing silence, instead, sends a weak signal about India’s commitment to trade fairness.

The WTO Dispute System and Its Limitations

1. Flawed Justification Based on WTO Dysfunction: Another reason cited is the dysfunction of the WTO’s dispute settlement body. Critics argue that filing a claim is pointless if no enforcement follows. But this view is too narrow. International law also helps distinguish legitimate authority from sheer power.
2. Legal Action as a Symbol of Legitimacy: Even without enforcement, legal claims express moral and legal authority. China and Canada filed WTO cases knowing the system’s weakness. They understand that speaking up upholds principles and pressures violators. India’s inaction shows a limited understanding of the power of legal norms.

India’s Missed Leadership Role

1. Absence in a Collective Global Statement: Around 40 WTO members recently supported a joint statement backing multilateral trade and WTO rules. India, surprisingly, did not sign. This goes against its usual advocacy for a rules-based system.
2. Opportunity to Lead the Global South: India often speaks for developing nations. This was a moment to lead by defending trade rules and uniting the Global South. A public stand could have shown strength, fairness, and leadership in shaping a just global trade system.

Question for practice:

Evaluate India’s response to the U.S. tariffs announced on April 2, 2025, and its implications for India’s global trade leadership.